Timken to acquire Philadelphia Gear
The Timken Company has announced an agreement to acquire the assets of Philadelphia Gear Corp., a leading provider of high-performance gear drives and components with a strong focus on value-added aftermarket capabilities in the industrial and military marine sectors, for $200 million. Based in King of Prussia, Penn., Philadelphia Gear had trailing 12-month sales through March 2011 of approximately $85 million. The acquisition brings proprietary power-transmission knowledge of premium gear drives, replacement products and services for growing markets including energy and infrastructure. The business also is a provider of products and services for military marine applications, including a recently awarded $80 million contract to provide main reduction gears for the U. S. Navy.
The addition of Philadelphia Gear to Timken's Process Industries segment expands the range of industrial services capabilities for both companies to offer their customers. Timken plans to combine Philadelphia Gear, which employs approximately 220, with its Industrial Services business to leverage the best capabilities of each organization across the global markets. Timken expects Philadelphia Gear to be accretive to earnings in its first full year and to generate income exceeding the cost of capital by 2014. The company plans to complete the acquisition through its Timken Gears & Services Inc. subsidiary by the third quarter of 2011, pending certain government and regulatory approvals.
Founded in 1892 to serve the steel and coal industries, Philadelphia Gear Corp. has been owned by the Ball family since 1920. The company has grown and evolved to become a premier global manufacturer and service provider of gear drives, drive components, inspection and repair services, as well as on-site technical services.
